Roblox Stock Sinks Premarket As Q4 Bookings, Key User Metrics Trail Expectations: Retail Fumes Over Loss-Making Streak

Bookings rose 21% to $1.36 billion versus the guidance of $1.336 billion to $1.361 billion and the consensus of $1.37 billion.

Roblox Corp. (RBLX) shares pulled back to their lowest level in nearly a month after the San Mateo, California-based company’s fiscal year 2024 fourth-quarter results disappointed investors. 

The immersive gaming and creation platform reported a fourth-quarter net loss per share of $0.33, narrower than the year-ago loss of $0.52 and the consensus loss estimate of $0.45.

Revenue climbed 32% year over year (YoY) to $988.2 million, exceeding the guidance of $935 million to $960 million.

Bookings rose 21% to $1.36 billion versus the guidance of $1.336 billion to $1.361 billion and the consensus of $1.37 billion. The bookings growth decelerated from 34% in the third quarter.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $65.6 million, exceeding the $10 million to $30 million guidance range.

Among operational metrics, daily active users (DAUs) rose 19% YoY to 18.9 million, and average bookings per monthly unique player rose 1% to $23.97. These two metrics also saw a slowdown in growth from third quarter’s 27% and 30%, respectively.

David Baszucki, founder and CEO of Roblox, said, “Roblox had a strong 2024, driven by our commitment to innovation and community.” 

CFO Michael Guthrie noted that full-year margins improved 620 basis points, cash flow from operations climbed 79% to $822.3 million and free cash flow jumped 417% to $641.3 million.

Roblox guided first-quarter revenue to be between $990 million and $1.015 billion and bookings between $1.125 billion and $1.150 billion. Consolidated net loss is expected to be between $287 million and $267 million.

The company expects full-year 2025 revenue of $4.245 billion to $4.345 billion, and bookings of $5.2 billion to $5.30 billion. It guided to a consolidated net loss of $1.07 billion to $995 million.

The consensus estimates call for bookings of $1.14 billion for the fourth quarter and $5.23 billion for the full year.

On Stocktwits, retail sentiment toward Roblox stock stayed ‘bearish’ (24/100) but the message volume was ‘extremely high.’

A user lamented about the overvalued nature of the stock.

Another said the fair value is only $21, given the company continues to generate losses.

In premarket trading, the stock slumped 16.93% to $62.73, marking the biggest one-day loss in about nine months. The stock has gained over 30% so far this year, on top of the nearly 27% rise in 2024.

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Editor’s Note: Roblox’s fourth-quarter bookings guidance is in billions, not millions. A previous version misstated the figure.<